On Monday the U.S. Treasury Department released a new guidance plan for lenders aimed at speeding up the short sales process. Short sale transactions have been very challenging to get to the closing table. Often, buyers and sellers wait months just to hear back from banks as to whether or not the sale is approved. The wait is so long that most buyers bail out of the transaction and move on. Sellers then have little or no time to get their home sold before foreclosure deadlines. The Treasury Department’s effort is a positive step in helping homeowners to avoid foreclosure. A major highlight to the plan is that lenders must give a yes or no answer to offers within 10 days.

Here is an initial Reuters news story outlining the new policies. Without major changes in the short sale process, the nation can expect a very large wave of foreclosures in the near future.